BIG 4 EXIT OPPORTUNITIES FOR TAX

Gabrielle Talks Money

25 Jan 202107:57

Summary

TLDRIn this video, Gabrielle, a tax manager at a Big Four accounting firm, discusses exit opportunities for tax professionals. She highlights three career milestones—becoming a senior associate after three years, a manager after five, and a senior manager at eight years or more—each offering unique opportunities to transition to roles like financial analyst, tax analyst, or even starting one's own firm. Gabrielle emphasizes the value of the CPA designation and the potential to reach high-level positions like VP of Finance or CFO, suggesting that broad financial knowledge and business acumen are key.

Takeaways

😀 Gabrielle is a tax manager at one of the Big Four accounting firms and discusses exit opportunities for tax professionals.
📈 The first critical career milestone is at the three-year mark when one becomes a senior associate, often with opportunities to transition to industry roles like financial analyst.
💰 After three years, professionals can expect a 10-25% increase in pay compared to their Big Four salary, but should consider long-term pay progression.
🔄 The three-year mark is also a good time to leave if tax or accounting isn't a good fit, as skills are still general enough to transition into other fields.
🏆 The CPA designation is valuable and provides core skills like business acumen and problem-solving, recognized in various industries.
🚀 The second key milestone is after five years when becoming a manager, which opens up more specialized tax roles and headhunting opportunities.
💼 Post-five years, roles like tax analyst, tax manager, or even tax planning specialist at banks become available, often with a significant salary range.
🛠 For those deeply specialized in tax, venturing into different fields might require a step back in terms of pay or position to gain pace in the new field.
💼 The third career milestone is at eight years or more as a senior manager, where roles like director of tax or partner become more attainable.
💰 Senior managers can expect a salary range of $120,000 to $200,000, with the real incentive being the potential to become a partner for higher earnings.
🏆 Aspiring to be a VP of Finance or CFO, CPAs should focus on broad financial knowledge and business operations, possibly complemented by an MBA.
🔗 For those interested in more information, Gabrielle suggests reading a blog post by Robert Half, a leading recruiter in accounting and finance.

Q & A

What is the main topic of Gabrielle's video?
-The main topic of Gabrielle's video is discussing exit opportunities for tax professionals in the Big Four accounting firms.
What is the significance of the three-year mark in a tax professional's career at a Big Four firm?
-The three-year mark is significant because it's when a professional becomes a senior associate, has completed the CPA exam, and has enough work experience to be designated as a CPA.
Why is the three-year mark a common time for professionals to leave the Big Four firms?
-The three-year mark is a common time to leave because professionals have gained enough experience and there are many opportunities available with greater flexibility and higher pay.
What is a typical job role one might pursue after transitioning from public practice to industry?
-A typical job role after transitioning from public practice to industry is a financial analyst position in an accounting or finance-related department within a company.
How much of a pay increase can one expect after the three-year mark when transitioning to industry?
-One can expect a pay increase of 10 to 25 percent when transitioning to industry after the three-year mark.
What is the second key milestone in a tax professional's career according to Gabrielle?
-The second key milestone is after the five-year mark when one becomes a manager, gaining more specialized skills in tax and becoming highly sought after.
What are some job opportunities available for a tax professional who has reached the manager level in the Big Four?
-Job opportunities at the manager level include tax analyst, tax manager, or even tax planning specialist positions in industry, as well as roles in other public practice firms.
What is the salary range for tax professionals at the manager level in the West Coast of Canada according to Gabrielle?
-The salary range for tax professionals at the manager level in the West Coast of Canada is around 100,000 to 150,000 dollars.
What is the third career milestone Gabrielle discusses for tax professionals?
-The third career milestone is after eight years or more, when one becomes a senior manager or director of tax, with the potential to look towards partner roles.
What is the potential salary range for a senior manager or director of tax?
-The potential salary range for a senior manager or director of tax is from around 120,000 to 200,000 dollars.
What is the incentive for a senior manager or director of tax to stay in their role according to the video?
-The incentive for a senior manager or director of tax to stay in their role is the potential to become a partner, which can significantly increase their salary and status.
What additional qualification can boost a CPA's chances of becoming a C-suite member?
-An MBA, in addition to a CPA, can make a professional invaluable and boost their skill sets to become a C-suite member.

Outlines

00:00

📈 Career Milestone: Transition to Senior Associate

Gabrielle, a tax manager at a Big Four accounting firm, discusses the first critical career milestone for tax professionals, which occurs after three years of service. At this point, individuals typically transition from an associate to a senior associate role. They have completed the CPA exam and gained enough experience to be designated as a CPA. Gabrielle notes that this is a common time for professionals to leave the firm due to increased opportunities and flexibility in career paths. The most common transition is to a financial analyst position within a company's finance or accounting department. The incentive for this move is often a significant pay raise, ranging from 10 to 25 percent more than their current Big Four salary. However, she also mentions that while the initial pay in industry may be higher, the pay range at Big Four firms increases more rapidly as one progresses.

05:00

🚀 Post-Five Year Opportunities and Managerial Roles

The second part of the script addresses the opportunities available after five years of experience, when one becomes a manager. At this stage, professionals have specialized tax skills, making them highly sought after. They may receive headhunting offers from recruiters on LinkedIn or consider roles in industry such as tax analysts, tax managers, or even tax planning specialists in banks. The pay range for these positions is typically between $100,000 to $150,000, depending on the location and market. Gabrielle advises that while it's more challenging to change fields at this point, it's still possible to venture into areas like strategy consulting or financial planning, albeit potentially with a pay cut or a need to start at a lower level. Entrepreneurial individuals might also consider starting their own tax preparation or planning firm. The script also touches on the possibility of becoming a director of tax or pursuing a partner role at a Big Four firm, with salaries ranging from $120,000 to $200,000.

🔝 Senior Manager and Partner Aspirations

In the final paragraph, Gabrielle discusses the career trajectory for those who have been with a Big Four firm for eight years or more, typically as a senior manager. At this senior level, it becomes increasingly difficult to transition out of tax into other fields. The focus shifts towards becoming a partner within the firm or transferring to a smaller firm for a higher chance of partnership. Salaries for senior managers or directors of tax can range from $120,000 to $200,000, with the potential to significantly increase as a partner. Gabrielle also mentions the possibility of aspiring to become a VP of Finance or CFO, emphasizing the importance of broad financial knowledge and business operations experience. She suggests that an MBA, in addition to a CPA, can greatly enhance one's qualifications for such executive roles. The video concludes with an invitation for viewers to share their thoughts on exit opportunities and to engage with the content by liking and subscribing.

Mindmap

Keywords

💡Big Four

The term 'Big Four' refers to the four largest professional services networks globally, which include Deloitte, PwC, EY, and KPMG. In the context of the video, Gabrielle, a tax manager, discusses career progression and exit opportunities specifically within these prestigious accounting firms. The script mentions the 'Big Four' as the starting point for many tax professionals and the various paths they can take after gaining experience.

💡Exit Opportunities

Exit opportunities refer to the various career paths or job transitions that professionals can make after working in a particular industry or firm. In the video, Gabrielle outlines the different stages at which tax professionals in the 'Big Four' might consider leaving for new opportunities, such as moving to industry roles or starting their own firms.

💡Career Milestone

A career milestone is a significant achievement or stage in one's professional life. The video identifies three key career milestones for tax professionals in the 'Big Four': becoming a senior associate after three years, becoming a manager after five years, and potentially reaching the level of senior manager or partner after eight years or more. These milestones are pivotal in determining one's future career trajectory.

💡Senior Associate

A senior associate is a position typically held by professionals who have gained substantial experience in their field and are preparing for more advanced roles. In the script, Gabrielle explains that after three years, tax professionals become senior associates, which is a critical point for considering new opportunities due to the acquisition of a broad skill set and the potential for higher pay in industry roles.

💡CPA (Certified Public Accountant)

A Certified Public Accountant is a professional who has met the certification requirements set by a professional accounting organization, demonstrating expertise in accounting and finance. The script mentions that tax professionals aim to be designated as CPAs, which is a significant credential that can open up more opportunities in the job market.

💡Financial Analyst

A financial analyst is a professional who performs financial analysis and offers insights to businesses or clients to make informed decisions. In the video, Gabrielle suggests that a common transition role for tax professionals moving from public practice to industry is that of a financial analyst, which often comes with a higher salary than their current positions.

💡Pay Range

Pay range refers to the span of possible compensation for a particular job or position. The script discusses the salary expectations at different career stages, such as the increase in pay when moving from a 'Big Four' firm to industry, and the higher salary ranges for senior roles like senior manager or partner.

💡Tax Specialist

A tax specialist is an individual who has in-depth knowledge and expertise in tax-related matters. Gabrielle mentions that after five years, tax professionals become managers with more specialized skills in tax, making them highly sought after in the tax world and opening up roles such as tax analysts or tax managers in industry.

💡Entrepreneur

An entrepreneur is someone who creates a new business, bearing the risks and rewards of a company's success. The video suggests that for those with an entrepreneurial spirit, starting their own tax preparation or planning firm is a viable exit opportunity after gaining experience in the 'Big Four'.

💡Partner

A partner in a professional services firm is a high-ranking position, often involving ownership and profit-sharing. Gabrielle discusses the possibility of becoming a partner in a 'Big Four' firm or transferring to a smaller firm for higher chances of partnership, which can significantly increase one's salary and status.

💡C-Suite

The C-Suite refers to the highest-level executives in a company, typically including the CEO, CFO, and other 'C-level' officers. The script mentions that having a CPA designation and potentially an MBA can make one invaluable for C-Suite positions, such as becoming a VP of Finance or CFO, emphasizing the importance of broad financial knowledge and business acumen.

Highlights

Gabrielle, a tax manager at a Big Four accounting firm, discusses exit opportunities for tax professionals.

The first career milestone is at the three-year mark when becoming a senior associate, which is a common time for professionals to leave for more opportunities.

After the three-year mark, professionals typically transition to financial analyst roles in industry with a significant pay increase.

The CPA designation is valuable and provides core skills like business acumen and problem-solving.

The second key milestone is after five years when becoming a manager, which increases specialization in tax and job market demand.

Managers may be headhunted for higher pay or early promotion, and industry roles like tax analysts or managers become available.

The pay range for tax managers in industry can be between $100,000 to $150,000, depending on the location and market.

It's more challenging to switch fields after becoming a tax specialist, but not impossible, with potential roles in strategy or financial planning.

Entrepreneurial individuals may start their own tax preparation or planning firms.

The third career milestone is at eight years or more as a senior manager, where venturing outside of tax becomes increasingly difficult.

Senior managers may aim for director of tax roles or partner tracks within Big Four firms.

Salaries for senior managers or directors of tax can range from $120,000 to $200,000.

The incentive for senior managers often lies in becoming a partner, with potential earnings ranging from $250,000 to $1,000,000.

For those aspiring to be VP of Finance or CFO, CPA expertise combined with broad financial knowledge and business operations experience is key.

An MBA in addition to a CPA can significantly boost one's skillset for C-suite positions.

Gabrielle suggests that experience in the company and understanding of its operations are crucial for aspiring VPs of Finance or CFOs.

The video concludes with an invitation for viewers to share their thoughts on additional exit opportunities and future career aspirations.